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Organizational design of a business using strategic management principles.

Evaluate the organizational design of a business using strategic management principles.

Scenario:

Congratulations! You are the new general manager of the Turul Winery based on the FLIGBY® simulation theme and gameplay. As the new general manager, you will need to quickly assess the state of the organization from a strategic perspective. You will utilize internal strategic analysis tools to evaluate the overall organizational design of the Turul Winery business. You will analyze the organization to build intelligence on its organizational structure, governance, policies, systems, organizational culture, talent pool, resources, capabilities, and the business's core competencies.

Your goal is to demonstrate skill and expertise in assessing and planning a results-oriented organizational (corporate level) strategy focused on resilience, efficiency, and innovation to ensure competitive advantage, sustainability, and growth. You will use the results of these analyses to inform the development of a strategic report due to the owner of Turul Winery in two weeks. Use the following criteria to evaluate the business's organizational design and create the strategic report.

Use the Strategic Evaluation Template to develop your strategic report for the owner of Turul Winery. For this assignment, complete Section I in the provided template. You will complete Section II in Unit 3.
Your strategic report should have a title page, table of contents, content pages, and a reference page.
Design a professional report using images, charts, diagrams, etc., to aid in disseminating information.
The strategy report is written in the third person.
Strategic Development

Explain the importance of developing a unique strategy to ensure long-term success for the Turul Winery.
Evaluate the competitive advantages of the Turul Winery.
Explain how to develop a winning strategy to ensure the Turul Winery's long-term success.
Evaluate the vision, mission, and values of the Turul Winery organization.
Strategic Management Hierarchy

Evaluate the corporate level of the Turul Winery using strategic management principles.
Evaluate the business unit level of the Turul Winery using strategic management principles.
Evaluate the functional level of the Turul Winery using strategic management principles.
Organizational Design Theory

Explain the value of organizational design using theories, principles, and concepts from peer-reviewed research.
Explain the relationship between organizational design and strategic development using peer-reviewed research.
Develop a statement explaining the ideal organizational design approach for Turul Winery.
Organizational Structure

Evaluate the Turul Winery organizational structure configuration.
Determine three advantages of the Turul Winery organizational structure configuration.
Determine three disadvantages of the Turul Winery organizational structure configuration.

Full Answer Section

Competitive Advantages:

Brand Reputation: A strong brand reputation can attract loyal customers and command premium prices.
Unique Terroir: The specific geographic location and climate conditions can produce distinctive wines.
Sustainable Practices: Adopting sustainable practices can appeal to environmentally conscious consumers and reduce costs.

Winning Strategy: To develop a winning strategy, Turul Winery should consider the following:

Market Segmentation: Identify target market segments and tailor products and marketing efforts accordingly.
Product Differentiation: Develop unique products that stand out from competitors.
Customer Relationship Management: Build strong relationships with customers through personalized service and loyalty programs.
Supply Chain Optimization: Streamline the supply chain to reduce costs and improve efficiency.
Digital Marketing: Utilize digital marketing tools to reach a wider audience and engage with customers.

Vision, Mission, and Values:

Vision: To become a world-class producer of premium wines, renowned for quality and sustainability.
Mission: To produce exceptional wines that delight our customers and contribute to the local community.
Values: Quality, innovation, sustainability, and customer satisfaction.

Organizational Design

Corporate Level: At the corporate level, Turul Winery should focus on strategic planning, resource allocation, and overall direction. A centralized structure with a strong corporate headquarters can ensure consistency and efficiency.

Business Unit Level: The winery may have multiple business units, each focusing on different product lines or geographic markets. A decentralized structure, with each unit having a degree of autonomy, can promote innovation and responsiveness to local market conditions.

Functional Level: At the functional level, the winery should have well-defined departments, such as production, marketing, sales, and finance. A matrix structure, combining functional and divisional elements, can improve coordination and knowledge sharing.

Organizational Design Theory

Organizational design theory emphasizes the importance of aligning the organization's structure with its strategy and environment. A well-designed organization can improve efficiency, innovation, and employee satisfaction.

Relationship Between Organizational Design and Strategic Development:

A well-designed organization can facilitate the implementation of strategic initiatives. For example, a decentralized structure can empower employees to make decisions and respond quickly to market changes.

Ideal Organizational Design for Turul Winery:

A hybrid structure, combining elements of centralization and decentralization, may be the most suitable for Turul Winery. This approach would allow for centralized control over strategic direction and resource allocation, while empowering local managers to make decisions and respond to market conditions.

Organizational Structure Evaluation

Advantages of the Current Structure:

Clear Hierarchies: The current structure may provide clear lines of authority and responsibility.
Specialized Roles: Functional specialization can lead to increased efficiency and expertise.
Established Processes: Existing processes and procedures can streamline operations.

Disadvantages of the Current Structure:

Silo Mentality: Functional silos may hinder collaboration and innovation.
Bureaucracy: Excessive bureaucracy can slow down decision-making and reduce agility.
Lack of Customer Focus: A functional structure may prioritize departmental goals over customer needs.

By carefully analyzing the current organizational design and considering the principles of strategic management, Turul Winery can make informed decisions to improve its performance and achieve long-term success.

Sample Answer

Strategic Evaluation of Turul Winery

Introduction

This report provides a strategic evaluation of Turul Winery, analyzing its organizational design and identifying areas for improvement. By understanding the winery's current structure, we can develop a strategy that will ensure long-term success and competitive advantage.

Strategic Development

Unique Strategy: To ensure long-term success, Turul Winery must develop a unique strategy that differentiates it from competitors. This could involve focusing on niche markets, such as organic or biodynamic wines, or developing innovative products like wine-infused spirits.